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If the interest rate is zero, the
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- __________ is the interest rate that makes NPV equal to zero when it is used as the discount rate.Which of the following statements is true about the present value factors? a. The present value factor is the reciprocal of the present value of annuity due factor. b. The present value factor decreases as the interest rate decreases. c. The present value factor is also known as the discount factor. d. The present value factor should always be greater than 1.Which of the following statements is true about the present value factors? The present value factor is the reciprocal of the present value of annuity due factor. The present value factor is also known as the discount factor. The present value factor decreases as the interest rate decreases. The present value factor should always be greater than 1.
- By which symbol is the break-even interest rate denoted?Which of the following statements is true?a. When the interest rate increases, the present value of asingle amount decreases.b. When the number of interest periods increases, thepresent value of a single amount increases.c. When the interest rate increases, the present value of anannuity increases.d. None of the above are true.What is a compounding interest rate?
- How would an increase in the interest rate or a decrease in the number of periods until the payment is received affect the present value (PV) of a sum of money? Please explain properly. Thank you!The future value of a single sum A. is generally larger than the present sum. B. decreases as the number of periods increases. C. does not depend upon the number of periods. D. decreases as the interest rate increases.What would cause the annual interest rate to be different from the annual effective rate or yield?
- simple payback period will be less than the payback period considering compounded interest rate (for the same amount and same period): True or FalseThe nominal rate equals the real rate plus the inflation rate. True or False?Illustrate with examples , that Interest rate is equivalent to the savings rate from the deposits?